Saudi Arabia Country Information

Saudi Arabia is the birthplace of Islam and home to Islam's two holiest shrines in Mecca and Medina. The king's official title is the Custodian of the Two Holy Mosques. The modern Saudi state was founded in 1932 by ABD AL-AZIZ bin Abd al-Rahman AL SAUD (Ibn Saud) after a 30-year campaign to unify most of the Arabian Peninsula. A male descendent of Ibn Saud, his son ABDALLAH bin Abd al-Aziz, rules the country today as required by the country's 1992 Basic Law. Following Iraq's invasion of Kuwait in 1990, Saudi Arabia accepted the Kuwaiti royal family and 400,000 refugees while allowing Western and Arab troops to deploy on its soil for the liberation of Kuwait the following year. The continuing presence of foreign troops on Saudi soil after the liberation of Kuwait became a source of tension between the royal family and the public until all operational US troops left the country in 2003. Major terrorist attacks in May and November 2003 spurred a strong on-going campaign against domestic terrorism and extremism. King ABDALLAH has continued the cautious reform program begun when he was crown prince. To promote increased political participation, the government held elections nationwide from February through April 2005 for half the members of 179 municipal councils. In December 2005, King ABDALLAH completed the process by appointing the remaining members of the advisory municipal councils. The country remains a leading producer of oil and natural gas and holds more than 20% of the world's proven oil reserves. The government continues to pursue economic reform and diversification, particularly since Saudi Arabia's accession to the WTO in December 2005, and promotes foreign investment in the kingdom. A burgeoning population, aquifer depletion, and an economy largely dependent on petroleum output and prices are all ongoing governmental concerns.

Geography

Saudi Arabia

Location:

Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen

desertification; depletion of underground water resources; the lack of perennial rivers or permanent water bodies has prompted the development of extensive seawater desalination facilities; coastal pollution from oil spills

governed according to Islamic law; the Basic Law that articulates the government's rights and responsibilities was promulgated by royal decree in 1992

Legal system:

based on Shari'a law, several secular codes have been introduced; commercial disputes handled by special committees; has not accepted compulsory ICJ jurisdiction

Suffrage:

21 years of age; male

Executive branch:

chief of state: King and Prime Minister ABDALLAH bin Abd al-Aziz Al Saud (since 1 August 2005); Heir Apparent Crown Prince SULTAN bin Abd al- Aziz Al Saud (half brother of the monarch, born 5 January 1928); note - the monarch is both the chief of state and head of government head of government: King and Prime Minister ABDALLAH bin Abd al-Aziz Al Saud (since 1 August 2005) cabinet: Council of Ministers is appointed by the monarch every four years and includes many royal family members elections: none; the monarchy is hereditary; note - a new Allegiance Commission created by royal decree in October 2006 established a committee of Saudi princes that will play a role in selecting future Saudi kings, but the new system will not take effect until after Crown Prince Sultan becomes king

Legislative branch:

Consultative Council or Majlis al-Shura (150 members and a chairman appointed by the monarch for four-year terms); note - though the Council of Ministers announced in October 2003 its intent to introduce elections for half of the members of local and provincial assemblies and a third of the members of the national Consultative Council or Majlis al-Shura, incrementally over a period of four to five years, to date no such elections have been held or announced

green, a traditional color in Islamic flags, with the Shahada or Muslim creed in large white Arabic script (translated as "There is no god but God; Muhammad is the Messenger of God") above a white horizontal saber (the tip points to the hoist side); design dates to the early twentieth century and is closely associated with the Al Saud family which established the kingdom in 1932

Economy

Saudi Arabia

Economy - overview:

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses more than 20% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector. Roughly 5.5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors. High oil prices have boosted growth, government revenues, and Saudi ownership of foreign assets, while enabling Riyadh to pay down domestic debt. The government is encouraging private sector growth - especially in power generation, telecommunications, natural gas exploration, and petrochemicals - to lessen the kingdom's dependence on oil exports and to increase employment opportunities for the swelling Saudi population, nearly 40% of which are youths under 15 years old. Unemployment is high, and the large youth population generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, infrastructure development, and government salaries. As part of its effort to attract foreign investment and diversify the economy, Saudi Arabia acceded to the WTO in December 2005 after many years of negotiations. The government has announced plans to establish six "economic cities" in different regions of the country to promote development and diversification.

GDP (purchasing power parity):

$546 billion (2007 est.)

GDP (official exchange rate):

$376 billion (2007 est.)

GDP - real growth rate:

3.5% (2007 est.)

GDP - per capita (PPP):

$19,800 (2007 est.)

GDP - composition by sector:

agriculture: 3% industry: 63.7% services: 33.3% (2007 est.)

Labor force:

6.563 million note: about one-third of the population in the 15-64 age group is non-national (2007 est.)

Labor force - by occupation:

agriculture: 12% industry: 25% services: 63% (1999 est.)

Unemployment rate:

13% among Saudi males only (local bank estimate; some estimates range as high as 25%) (2004 est.)

since 2002, Saudi Arabia has provided more than $480 million in budgetary support to the Palestinian Authority, supported Palestinian refugees through contributions to the UN Relief and Works Agency (UNRWA), provided more than $250 million to Arab League funds for the Palestinians, and pledged $500 million in assistance over the next three years at the Donors Conference in Dec 2007; pledged $230 million to development in Afghanistan; pledged $1 billion in export guarantees and soft loans to Iraq; pledged $133 million in direct grant aid, $187 million in concessional loans, and $153 million in export credits for Pakistan earthquake relief; pledged a total of $1.59 billion to Lebanon in assistance and deposits to the Central Bank of Lebanon in 2006 and pledged an additional $1.1 billion in early 2007

Land Forces (Army), Navy, Air Force, Air Defense Force, National Guard, Ministry of Interior Forces (paramilitary)

Military service age and obligation:

18 years of age (est.); no conscription (2004)

Manpower available for military service:

males age 16-49: 8,547,441 females age 16-49: 6,381,098 (2008 est.)

Manpower fit for military service:

males age 16-49: 7,398,417 females age 16-49: 5,525,357 (2008 est.)

Manpower reaching militarily significant age annually:

male: 271,905 female: 261,795 (2008 est.)

Military expenditures:

10% of GDP (2005 est.)

Transnational Issues

Saudi Arabia

Disputes - international:

Saudi Arabia has reinforced its concrete-filled security barrier along sections of the now fully demarcated border with Yemen to stem illegal cross-border activities; Kuwait and Saudi Arabia continue discussions on a maritime boundary with Iran

current situation: Saudi Arabia is a destination country for workers from South and Southeast Asia who are subjected to conditions that constitute involuntary servitude including being subjected to physical and sexual abuse, non-payment of wages, confinement, and withholding of passports as a restriction on their movement; domestic workers are particularly vulnerable because some are confined to the house in which they work unable to seek help; Saudi Arabia is also a destination country for Nigerian, Yemeni, Pakistani, Afghan, Somali, Malian, and Sudanese children trafficked for forced begging and involuntary servitude as street vendors; some Nigerian women were reportedly trafficked into Saudi Arabia for commercial sexual exploitation tier rating: Tier 3 - Saudi Arabia does not fully comply with the minimum standards for the elimination of trafficking and is not making significant efforts to do so; the government continues to lack adequate anti-trafficking laws and, despite evidence of widespread trafficking abuses, did not report any criminal prosecutions, convictions, or prison sentences for trafficking crimes committed against foreign domestic workers (2008)

Illicit drugs:

death penalty for traffickers; improving anti-money-laundering legislation and enforcement